02-26-2009 06:21 AM
02-26-2009 05:47 PM
I have a 550 and I need to convert my lease which I have been paying on time all the time. Do you think GMAC will go for it?
If you've paid well over the life of the lease, I am willing to bet that they will have no problem approving you. The main question is what rate are they going to give you. They won't let that car go and sit in a lot somewhere for a year when they have a buyer with a good payment record with them. Good luck.
02-26-2009 11:32 PM - edited 02-26-2009 11:35 PM
There are a lot of misconceptions people have about buying leases out/end of lease procedures that cause a lot of confusion.
The biggest thing to remember is: although you have been given a buy out number for the end of the lease, you have not been given a BUY OUT FINANCING GUARANTEE. That number is simply what the bank is willing to sell it to you for.
Buying your lease out is simply a BRAND NEW USED VEHICLE FINANCING TRANSACTION!!!!!!
1- the lease buy out number is an arbitrary number generated at lease inception that is basically a guess on what the vehicle is going to be worth: If in x years you bring us a vehicle with YY thousand miles on it you can buy it from us for Z amount. That final buy out number can when the time comes around have no relation to what your vehicle is actually worth:
they may say the buy out is $15,000 when if you go on Kelly your vehicle is only worth $12,000. Or they say worth $15.000 and Kelly says 18,000. In any case where the vehicle is worth significantly less then the buy out on the financing end, no bank is going to finance a 12,000 vehicle for 16,000 after taxes and fees unless you have really good credit or a down payment. the final condition of the vehicle that you are turning in also determines what it is worth- put 65,000 miles on a 3 year old vehicle (seriously depreciating it) and see who wants to finance you.
2- Using the rule of thimb that every 1000 financed is 20 a month in payment , most leases are cheaper then the buy out. Do you, after making 3 years of lease payments want to get into 5 or 6 years of higher payments to have a 10 year old vehicle you are still making payments on?
3- what your vehicle is truly worth, in the banks eyes at the end of the lease is going to determine how they look at it for financing you.
4 Your credit at the time of the lease buy out is going to determine what rates payments and loans you get.
Is there going to be some loyalty consideration and some consideration that the bank does not want to be stuck with the vehicle--YES will it be enough to get you financed at a favorable rate not with a 550.
YOU NEED TO START SAVING MONEY NOW TO EITHER GET INTO A NEW LEASE, A NEW CAR OR A USED CAR OR TO PUT MONEY DOWN TO BUY YOUR LEASE OUT
IN ALL HONESTY YOU WILL NOT BE ABLE TO GET FINANCING TO BUY YOUR VEHICLE OUT. IF GMAC IS STILL IN LEASING THEY MAY LOYALTY RENEW YOU TO ANOTHER LEASE IF YOU PUT SIGNIFICANT MONEY DOWN.
07-30-2012 12:42 PM - last edited on 07-30-2012 01:31 PM by MarineVietVet
I am 7 months into my lease for a 2012 cadillac srx luxury;and have a monthly payment of 521.98.I would like
to convert this into an ownership with financing.Does this pay to consider? Thank you.
Hi there. Please don't post personal information for your online safety and security - MarineVietVet, myFICO moderator
07-30-2012 01:29 PM - edited 07-30-2012 01:32 PM
Can you explain why you need to convert the lease to financing?
Overall, it does not make financial sense to make this adjustment.
In order to convert the lease you are going to have to buyout the lease at the current balance (Leases have a loan balance just like regular loans). It is likely worth several thousands less than what you owe on it. This will make it extremely expensive to make this adjustment
GMAC no longer does auto loans or leasing. GM now does their financing through Ally Bank.
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